Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. If you continue browsing the site, you agree to the use of cookies on this website. See our User Agreement and Privacy Policy.

Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. If you continue browsing the site, you agree to the use of cookies on this website. See our Privacy Policy and User Agreement for details.

4.
Today’s Speaker• VDC Research Group  Founded in 1971, continuous, profitable operation for nearly 40 years.  Focus on a number of mission critical edge and embedded network and enabling technology markets  Hundreds of clients annually…90% technology suppliers, tech investors.  Customer engagement and retail automation coverage initiated more than 20 years ago.• Chris Rezendes – Executive Vice President Chris has nearly 20 years experience in embedded, industrial, defense and other mission critical and high availability technology industries. He has more than 15 years experience in senior management and leadership positions at a number of IT systems and professional services organizations. His work includes working closely with multiple levels of client organizations from Product Managers through CEOs, providing decision support on a wide range of product, market, channel, organization and corporate development opportunities. He has also worked with many of the most successful private equity and venture capital firms in the Americas and Europe. His work with the financial services community includes opportunity identification and due diligence support on investments ranging from $30 million to nearly $3 billion.3 –  2010 VDC Research Group, Inc. AutoID & Transaction Automation Practice

6.
Customer Engagement Lifecycle, Location,Still Changing 3rd Site Point of Service: SelectionPoint of Point of Point of Point of StreetService: Decision Service: SaleDelivery Selection Road Point of Sale Customer Point of Point of Service: Decision DeliverySource: VDC Research5 –  2010 VDC Research Group, Inc. AutoID & Transaction Automation Practice

9.
…Led By Cost & Ops Goals, Customer Empowerment Investment Drivers • Retailers work with wafer-thin margins and are thus always looking for cost savings on the operational front, in an effort to also be able to pass on these Cost Savings 4.1 savings to the consumer / shopper. For respondents, this continued to be the single most important Operations Improvement 3.8 investment driver for the purchase of retail automation technologies. Customer Empowerment 3.8 • Retail enterprises are also continually turning to automation technology to increase operational efficiencies as a method to generate cost savings Sales Uplift 3.6 while enhancing overall shopper experience, giving this investment driver an importance rating of 3.8. Industry Compliance 3.6 • Compliance with industry standards and regulations didn’t rate as high as most of the other drivers. This is, however, bound to change especially with anMultichannel Synchronization 3.5 increase in the number of card-related frauds in retail establishments lately. Government Compliance 3.4 1.0 2.0 3.0 4.0 5.0 Investment Drivers Source: VDC Research 8 –  2010 VDC Research Group, Inc. AutoID & Transaction Automation Practice

13.
…App Developers Know This, and are Busy… Consumer Oriented Development Activities • Gaming and social networking apps lead: (Overall)  The success of interactive games that utilize the increasingly powerful hardware and screen technologies being brought to Social Networking 38% 15% 47% market by handset OEMs had lead to massive revenue and marketing opportunities for mobile developers.  The success of applications such as Twitter, Foursquare, Mobile Commerce 28% 23% 49% and commerce gear applications like Shopkick also support the continued mobile development that is occurring. Games 39% 11% 50% • Commerce and location based applications are coming. Location Based 20% 26% 53%  Mobile commerce and location based applications are the two most widely planed application areas for developers.  Location based applications and mobile advertising are bigInstructional Videos 24% 21% 56% drivers and are very early in their development stage – business model are continuing to emerge with Shopkick Interactive being an excellent example. 22% 22% 57% Brochures  Near field communication (NFC) capable Smartphones are on the horizon, which will bring new mobile applications and channel opportunities. Verizon, AT&T and T-Mobile all Navigation (GPS) 29% 12% 59% plan to launch trials for mobile-payment services in 2011. Ringtones 31% 9% 60% Have Already/Currently Developed Planning No Plans Source: VDC Research 12 –  2010 VDC Research Group, Inc. AutoID & Transaction Automation Practice

16.
‘Kansas’ May No Longer Exist, but KS is Everywhere• The global economy as we knew it no longer exists. Customers are more powerful than ever before, forcing b-to-c and b-to-b operators to realign with a rapidly changing customer base and ever expanding scope of requirements.• For retailers and other b-to-c operators prepared for this, these informed customers become better customers. For the unprepared, not so much …• Retailers, b-to-c operators and their technology suppliers have the clear mandate to meet customers where they are, and where they are going, in the post-Ford century / post- recession economy where consumerism as we knew it has changed fundamentally.• This means we are going to need to support personal liability devices – from associates, to partners and now customers.• But, those devices will need to be deployed and managed with specific technical, operational and financial context …15 –  2010 VDC Research Group, Inc. AutoID & Transaction Automation Practice

17.
Where does this leave us? Where are we going?• Reconsider b-to-c operator IT investment within one of the following larger frameworks:  Inventory management  Customer empowerment  Financial and regulatory compliance• Customer empowerment is the most volatile, fastest growing, and uncertain segment of the retail, or b-to-c operator opportunity  Involves dozens of technologies – many with fuzzy market segment definitions  Incorporates some of the hardest to define ROI solutions on the market – think social media, IDDS and mobile marketing and merchandising  Integration requirements and BI/ analytics are top considerations for evaluators• Mobility is not coming … it is here … but it is NOT the only play in the market  Managed services technical and commercial models matter in a growing number of segments  A theme that we identified in 2008 – transaction singulation inside individual user profiles in real time – is higher on the wish list of more operators  Physical and logical security solutions – discrete, applied, integrated, embedded remain key priorities• Traditional POS technology opportunities are stronger when they relate to these solutions16 –  2010 VDC Research Group, Inc. AutoID & Transaction Automation Practice